Imcopa's consent solicitation payments upheld by English High Court

By Toni Weeks

San Diego, Sept. 5 - Imcopa Importacao, Exportacao Industria e Oleos SA won a case brought against it in the English High Court.

The company was defended by lawyers from Shearman & Sterling's London office.

According to a press release from the law firm, the case arose out of a claim brought by two individual investors against Imcopa for breach of the purchase contract for Imcopa International Cayman Ltd.'s $100 million of 10 3/8% notes originally due in 2009. Imcopa Importacao and Imcopa International sought and obtained noteholder consent in October 2010 to amend the terms of the notes to enable the company to complete a debt restructuring, and the group's restructuring plan was subsequently approved by the Brazilian courts.

The judgment reinforces that payments offered to noteholders in a consent solicitation are not illegal or considered a bribe if the offers are made openly to all noteholders and if all noteholders are entitled to exercise their vote freely.

The English High Court has refused permission to appeal its judgment, the release noted, and the claimants have now applied for leave to the English Court of Appeal. The court has not yet made a decision whether to grant the claimants permission to appeal.

Imcopa makes soybean products and is based in Araucaria, Brazil.

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